Balaji, who retired from First-Class cricket in September 2016, remains associated with the Tamil Nadu team as its bowling coach.
He was an integral part of KKR's bowling line-up from 2011 to 2013, and contributed to the team's victorious campaign in 2012.
Making the announcement, KKR CEO said: "It's great to welcome Bala back to the KKR family. He was an integral part of KKR from 2011-13 and played a key role in helping KKR win the championship in 2012".
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